The cryptocurrency market is showing signs of recovery after a sharp two-day correction that caused significant declines among major altcoins.
As the market rebounds, Mantra (OM) has garnered attention with its notable recovery. Currently priced at $4.14, OM has risen from a 24-hour low of $3.78, reflecting steady gains after a key breakout.
Bullish Flag Breakout:
Mantra (OM) has recently broken out from a bullish flag pattern that persisted for three weeks. Following a period of consolidation within a descending channel, the token managed to surpass its upper resistance trendline at $4.09. This breakout triggered a rapid rise to $4.32, highlighting renewed upward momentum.
OM is now testing the breakout level, trading slightly below its recent peak at $4.14. This phase is critical in technical analysis, as a successful rebound from this level would confirm the breakout and potentially drive further gains. If buyers sustain their positions, OM could target its next major resistance level at $4.53, a point marked in red on the chart and also its all-time high.
Breaking past this significant resistance could reinforce bullish sentiment, paving the way for a new rally. In such a scenario, OM might aim for the psychological $5 mark, representing a 22% increase from its current price.
What Lies Ahead?
The outcome of OM’s retest at the $4.09 breakout level will likely determine its next move. A strong reversal from this level could intensify bullish momentum.
From a technical perspective, the Relative Strength Index (RSI) is hovering near 60, suggesting moderate bullish strength. Meanwhile, the MACD indicates a potential crossover, which could further support an upward trajectory.
As sentiment improves, traders should monitor closely for a decisive breakout above $4.53. If achieved, this could lead to a rally toward $5 or higher.
Disclaimer:
This content is for informational purposes only and does not serve as financial advice. Always conduct your own research and consult with a professional before making cryptocurrency investment decisions.